A lot of stock buying was prossessed by credit (putting a downpayment on the stock if didn't have enough money)
Credit worked on stocks if the stock went up
If stock went down-people begin to PANIC
Black Tuesday or The Great Crash-(October 29, 1929)
Over 16 million stocks traded
Industrial index dropped about 10%
Stocks became worthless (1/2 their original value)
People on credit owed money
Causes Behind the Great Depression
A.) Having to depend on a couple of industries (no diversity)
Mainly made money off of construction or industry
Those industries began to decline
Others didn't have enough potential to bring up the slack
B.) Lack of Equality in Wealth
Production was increasing, the profits were too small to live off of
Some lived by "just making it" with hardly nothing
C.) Credit Structure
People (especially farmers) were in too much debt to pay off loans
Small and large banks started to get in trouble
Bigger banks invested recklessly
D.) International Debt
European deamand for American goods declined
Countries who owed the US for war debts could not pay them back
US demanded debts to be payed off
US continued to give loans for the earlier loans they needed to pay off (doubled the debt)
American Protective Tariffs made it difficult for other nations to sell their goods to the US
Progressions of the Depression
Banking Crisis-Collapse of all money systems
Nation's money supply shrank by 1/3 or more
Decline in money supply led to decline in purchasing (DEFLATION)
Led to reduction in prices, production, and lay-off
25% of America's employees were laid-off
GNP was falling
The Dust Bowl
Great Plains region
Steady decline of rainfall and increase of heat
Decade of fertile farmlands turning into deserts
"Oakies" - (farmers from Oklahoma) traveled to other areas to find places to work
People Affected by the Depression
African Americans
Many left the south by choice or evicted from homeland
Whites thought they were higher up in seniority for jobs than blacks
Over 2 million African Americans (1/2 the population) were on some sort of relief for living
Scottsboro Case: 9 black teenagers arrested on a train for vagrancy and disorder; two women claimed that they were raped by them; originally sentenced to death; evidence led them to be taken off of charge but still did not leave prison for a while
Hispanics
Discriminated against
Population migrated mostly to Cali.
Filled many "black" folks jobs
Whites demanded those jobs of the hispanics (their unemployment raised)
Most left America to go look for a better life in Mexico
Asians
Only found jobs within their own communities
Worked fruit stands, Laundry shops, etc.
Women
Economic crisis=women should stay home
If the husband had a job, not appropriate for a woman to find one
To help balance out the economy, they made it illegal for a while to allow more than one job per one household
Opportunities declined
Birth rate for women declined-couldn't afford to have them
American Culture Influenced by the Depression
Dramatized the poverty in America
Photographers went around getting pictures of the horrific lives they were living
Radio
Every American had radio
Brought families/friends together
Comedies and Adventures brodcasted for entertainment
Soap Operas became popular
Broadcasted World Series (Babe Ruth!), Academy Awards, political debates, etc.
Movies
Became more poplular
Very careful about controversy of what they wrote and acted out b/c of war
Frank Capra: produced social message of the corruption of the US
Walt Disney: King of animation (Snow White, Mickey Mouse, The Wizard of Oz, etc.)
Chapter 26 ~ *The New Deal*
The Start of it all...
Popular Front
Group was to the "left"-Communists
Supported New Deal & FDR
Abraham Lincoln Brigade
Traveled to Spain to join the fight againts the facists
Communist Party directed most of the activities of the facists
Southern Tenant Farmers Union
Socialist Party, which was under Norman Thomas.
Used economic crisis as evidence supporting the failure of Capitalism and it sought vigorously to win public support
STFU, which was supported by the party, and organized by the young socialist, H.L. Mitchell, attempted to create a biracial coalition of sharecroppers, tenant farmers, and other economic reform.
Anticommunism
Hostility toward the party was really intense
Tried to get the communists out or the countryside
FDR President
Election of 1932, Franklin Delano Roosevelt vs. Herbert Hoover
FDR won the election
During inauguration, Hoover tried to tell Roosevelt to tell the people its okay, but he refused.
March 4th, 1933, Hoover watched FDR get sworn in
AAA
Agriculture Adjustment Act, was created to help farmers
Told the farmers how much they were to produce
Gave farmers money, payed them, for extra land that they had
It hoped to raise farm prices, benefiting everyone
Industrial Recovery
Early efforts were made to achieve industrial recover, such as when the Rural Electrican Administration found a way to make electricity reach thousands around the world
Minimum wage was established and ranged from 30-34 cents an hour
Max hours per week being able to work was 35-40 hours
AAA & NRA
Brought a lot of controversy whether America was becoming more socialist or not
AAA, helped farmers to gain money for the government in order to get the farm prices on track
AAA seen as socialist because it was trying to get everyone to make equal amounts of money, thus dividing the gap between the rich and poor, thus becoming more of a socialist nation
NRA, made peoples wages start to balance with each other, limiting almost every American to a standard of wealth
Banking Industry & Stock Market
Measures were taking to stabilize the banking industry
Dollar was made into a whole
SEC, Securities Exchange Commission, used to evaluate stock market
Federal Government Insurance stepped in and deposited at least $2500 into each bank across the nation
Glass-Steagall Act, government authorities were able to curb irresponsible speculations by banks
CWA
Civil Work Administration
Goal was to get as many people in to the work force as possible
Did this by creating public works projects
Many people were helped by this
In the middle
FDR was criticized for being too in the middle of communism and capitalism
People who saw him as a communist saw his acts as being socialist
Capitalism people, saw him as supporting the rights for a bigger gap in the social classes.
American Liberty League was created by the wealthiest of wealth in order to go against his "doctorial" statements in the New Deal.
Second New Deal
Helped to desperse the continuing economic crisis that was occuring during that period
Most people thought FDR's Second New Deal, was his second plea for a presidential election
He tried to break up the higher ranking commerce's
AFL
In the 1936 Presidential Election, the AFL revealed a new committee
The new politian revealed was Alf London
Alot of FDR's main critics were assassinated or overpowered
Huey Long, who once voted for FDR, seemed to become his worse nightmare
Supreme Court
The Supreme Court, seemed to stand in the way of FDR's new deal because they tried to hit it down or jeep it from enacting in the society
AAA was shot down by supreme court
NRA pushed away as well
FDR wanted to change the ideology of supreme court so they would support him
Groups affected:
African Americans
Little was done to assist them
FDR tried for less discrimination
Black Cabinet-FDR appointed blacks to his cabinet
Discrimination still remained for the blacks because their skin color
Native Americans
Just another encouragment of NA to assimilate
Trying to get red of it rather than save it
John Collier- social worker on NA
Indian Reorganization Act- advance goals of the NA
Women
FDR appointed first female cabinet member
More than 100 women at lower levels
Women were still tring to find rights and gain more freedom
Legacy
Did not solve the problems of the depression, but did give it a jump start to help put it in the right direction
Without the New Deal, and all of FDR's accomplishments, America probably would have been in the depression slumps for many more years than what it was in
FDR's legacy lives as being one of the most profound American presidents of his day
Chapter 25 ~ *The Great Depression*
The Very Beginning of the Fall
Black Tuesday or The Great Crash-(October 29, 1929)
Causes Behind the Great Depression
Progressions of the Depression
The Dust Bowl
People Affected by the Depression
African AmericansHispanics
- Discriminated against
- Population migrated mostly to Cali.
- Filled many "black" folks jobs
- Whites demanded those jobs of the hispanics (their unemployment raised)
- Most left America to go look for a better life in Mexico
Asians- Only found jobs within their own communities
- Worked fruit stands, Laundry shops, etc.
WomenAmerican Culture Influenced by the Depression
Radio
Movies
Chapter 26 ~ *The New Deal*
The Start of it all...
Popular Front
- Group was to the "left"-Communists
- Supported New Deal & FDR
Abraham Lincoln Brigade- Traveled to Spain to join the fight againts the facists
- Communist Party directed most of the activities of the facists
Southern Tenant Farmers Union- Socialist Party, which was under Norman Thomas.
- Used economic crisis as evidence supporting the failure of Capitalism and it sought vigorously to win public support
- STFU, which was supported by the party, and organized by the young socialist, H.L. Mitchell, attempted to create a biracial coalition of sharecroppers, tenant farmers, and other economic reform.
Anticommunism- Hostility toward the party was really intense
- Tried to get the communists out or the countryside
FDR President- Election of 1932, Franklin Delano Roosevelt vs. Herbert Hoover
- FDR won the election
- During inauguration, Hoover tried to tell Roosevelt to tell the people its okay, but he refused.
- March 4th, 1933, Hoover watched FDR get sworn in
AAA- Agriculture Adjustment Act, was created to help farmers
- Told the farmers how much they were to produce
- Gave farmers money, payed them, for extra land that they had
- It hoped to raise farm prices, benefiting everyone
Industrial Recovery- Early efforts were made to achieve industrial recover, such as when the Rural Electrican Administration found a way to make electricity reach thousands around the world
- Minimum wage was established and ranged from 30-34 cents an hour
- Max hours per week being able to work was 35-40 hours
AAA & NRA- Brought a lot of controversy whether America was becoming more socialist or not
- AAA, helped farmers to gain money for the government in order to get the farm prices on track
- AAA seen as socialist because it was trying to get everyone to make equal amounts of money, thus dividing the gap between the rich and poor, thus becoming more of a socialist nation
- NRA, made peoples wages start to balance with each other, limiting almost every American to a standard of wealth
Banking Industry & Stock Market- Measures were taking to stabilize the banking industry
- Dollar was made into a whole
- SEC, Securities Exchange Commission, used to evaluate stock market
- Federal Government Insurance stepped in and deposited at least $2500 into each bank across the nation
- Glass-Steagall Act, government authorities were able to curb irresponsible speculations by banks
CWA- Civil Work Administration
- Goal was to get as many people in to the work force as possible
- Did this by creating public works projects
- Many people were helped by this
In the middle- FDR was criticized for being too in the middle of communism and capitalism
- People who saw him as a communist saw his acts as being socialist
- Capitalism people, saw him as supporting the rights for a bigger gap in the social classes.
- American Liberty League was created by the wealthiest of wealth in order to go against his "doctorial" statements in the New Deal.
Second New Deal- Helped to desperse the continuing economic crisis that was occuring during that period
- Most people thought FDR's Second New Deal, was his second plea for a presidential election
- He tried to break up the higher ranking commerce's
AFL- In the 1936 Presidential Election, the AFL revealed a new committee
- The new politian revealed was Alf London
- Alot of FDR's main critics were assassinated or overpowered
- Huey Long, who once voted for FDR, seemed to become his worse nightmare
Supreme Court- The Supreme Court, seemed to stand in the way of FDR's new deal because they tried to hit it down or jeep it from enacting in the society
- AAA was shot down by supreme court
- NRA pushed away as well
- FDR wanted to change the ideology of supreme court so they would support him
Groups affected:African Americans
- Little was done to assist them
- FDR tried for less discrimination
- Black Cabinet-FDR appointed blacks to his cabinet
- Discrimination still remained for the blacks because their skin color
Native Americans- Just another encouragment of NA to assimilate
- Trying to get red of it rather than save it
- John Collier- social worker on NA
- Indian Reorganization Act- advance goals of the NA
Women- FDR appointed first female cabinet member
- More than 100 women at lower levels
- Women were still tring to find rights and gain more freedom
Legacy